This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

Hillenbrand Moving Away From Casket Cash

NEW YORK (TheStreet) -- You had to dig deep yesterday for good news, no pun intended. For Hillenbrand (HI), which is best known for its subsidiary Batesville, (formerly Batesville Casket Company), that good news came in the form of a solid fourth quarter earnings release, after the market closed.

While revenue rose 9.6 % to $253.5 million, it was below the $255.6 million consensus estimate. The big news was on the earnings front, which came in at 50 cents a share, well ahead of the 42 cents a share consensus estimate. Shares moved slightly higher in post-market trading, but we'll see how Mr. Market interprets Hillenbrand's earnings news in today's trading.

For years, Hillenbrand, which became a publicly traded company in its current incarnation following its separation from Hill-Rom Holdings (HRC) in 2008, has been associated with the funeral care industry. Indeed, Batesville, which manufactures caskets, burial vaults, and urns, has been the company's main source of revenue and operating earnings for years.

But Hillenbrand has been diversifying its business model, primarily through acquisitions, and Batesville is becoming a smaller piece of the pie.

In 2010, Batesville generated 85% of total revenue. For 2012, that fell to about 62%. Batesville still generated the bulk of EBITDA this year -- $142.6 million, and while revenue has been declining for the casket maker, it is still a solid, cash-generating business.

Hillenbrand, however, has been building out its Process Equipment Group, which builds material handling equipment and systems. In 2010, the company acquired K-Tron, which manufactures bulk solids material handling equipment. In 2011, Hillenbrand acquired Rotex, which manufactures dry material separation machines. Interestingly, nearly 40% of the Process Equipment Group's revenue is generated from the sale of replacement parts.

Stock quotes in this article: HI 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,363.80 +101.24 0.62%
S&P 500 1,842.98 +12.37 0.68%
NASDAQ 4,034.1610 +11.4670 0.29%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs